Towers Watson Research & Ideas

Global News Brief

Government to offer employment subsidies  - January 2009

Subsidies could be provided to companies that hire new full-time workers, or offer their current part-time workers new full-time positions, as part of a general program designed to boost the economy and the labor market.

Key Details
 

The main features of the new measures are: 

  • Subsidies will range from JPY 500,000 (USD 5,555) for large companies to JPY 1,000,000 (USD 11,110) for smaller companies per hired worker, up to a period of six months. Additional special subsidies for firms recruiting graduate students will also be available.
  • Recommendations will be published to encourage the re-employment of temporary and laid-off workers, including senior citizens and graduating students.
 Background
 

The measures are part of the new Economic Safety-Net package, and will be included in the supplementary budget for FY09, both of which were submitted to the ordinary Diet session that started on January 5, 2009.